11:05 AM EDT, 07/24/2024 (MT Newswires) -- MAG Silver ( MAG ) on Wednesday reported second-quarter production from its Juanicipio joint venture in Mexico with UK-listed Fresnillo.

The mine produced 5.0 million ounces of silver in the period, falling from the year-ago output of 5.2 million ounces.

Gold production fell to 9,259 ounces from 10,573 ounces and lead production jumped to 10.0 million pounds from 7.5 million pounds.

Zinc production climbed to 18.9 million pounds from 11.9 million pounds.

With the continued operational outperformance in the first half, MAG Silver ( MAG ) said the silver head grade guidance at Juanicipio was raised to the range of 420 grams per tonne (g/t) to 460 g/t for 2024 from the previous guidance of 380 g/t to 420 g/t.

"The second quarter continued to validate the strength and quality of our operations at Juanicipio," chief executive George Paspalas said in a release. "With the robust foundation of the first half of 2024, increased silver grade guidance and ongoing project optimization we remain confident we are well positioned for continued growth and long-term success."

Fresnillo owns 56% of the mine while MAG Silver ( MAG ) owns the remaining 44%.

National Bank of Canada maintained its outperform rating on the company and its $25.75 price target following the news.

The bank said in a Wednesday note that MAG Silver ( MAG ) was its "conviction pick" in its second-quarter earnings preview, and it is getting more constructive based on valuation, trending operational performance, improving balance sheet plus potential dividend announcement.

MAG Silver ( MAG ) shares were last seen up $0.87 to $19.18 on the Toronto Stock Exchange.

Price: 19.19, Change: +0.88, Percent Change: +4.81